What is MTD for ITSA?
A government initiative to modernise HMRC’s tax system which aims to make the process simpler and more efficient.
Who will it affect?
Self-employed businesses, partnerships, and landlords with turnover above£10,000.
When does it come into force?
From your first accounting period starting on or after 6th April 2024.
What will it mean?
There are 4 main changes to the current system…
1.Keep digital records for your business transactions, paper records will no longer suffice.
2.Submit your tax records digitally to HMRC. This will most likely involve an accounting software
such as QuickBooks or Xero.
3.Send quarterly figures to HMRC summarising your income and expenses for that period.
4.Sending a final declaration to HMRC at the year end. This will replace the annual Self-Assessment tax return.
We appreciate this is a big change for so many clients so we will be getting in contact over the coming months to help them to prepare.
In the meantime, if you have any questions, please feel free to call us on 01227 770500 or 01843 608081